It’s time for another mortgage lender review – this time we’ll look at a seemingly unique company called, “Close Your Own Loan.”
At first glance, it sounds like you’ll be doing most of the work, but presumably for a discount.
However, does “closing your own loan” really give you an edge over other competitors? That’s the big question mark.
Who Is Close Your Own Loan?
First a little background. Close Your Own Loan, or CYOL for short, is an online mortgage lender backed by, rather ironically, Peoples Bank, which has roots that go back to 1871.
The company is a family-owned, FDIC-insured and regulated bank headquartered in Lawrence, Kansas. They also seem to do business as Peoples Banking Unusual.
Anyways, Close Your Own Loan is based out of Southern California, and appears to be a mortgage broker, meaning they work as a middleman between the homeowner and the lender.
They can shop your mortgage rate with several different lenders at once to get you the best deal around, which can be a plus over retail banks.
They claim to reduce their expenses by doing everything online in a streamlined fashion, and pass the savings onto you.
The company relies on its automated underwriting system to spit out loan approvals quickly and accurately, instead of spending weeks underwriting the file.
So all in all pretty basic stuff here.
Loan Coordinator vs. Loan Officer
Here’s one notable distinction, though it may just be semantics.
Instead of working with a loan officer, you are assigned a “loan coordinator” and a loan processor.
This is their way of helping “you skip the high pressure sales tactics used by other lenders.”
Essentially, their marketing pitch focuses on the dark side of loan originators and their tendency to steer borrowers into higher-risk or more expensive loans.
So instead of being “sold a loan,” you can choose what you’d like without any intimidation.
The loan coordinator will monitor your mortgage from the moment your application is submitted to the day it funds, kind of like a loan officer.
They can help you decide between different loan programs, interest rate options, and guide you through the home loan process. Again, much like a loan officer.
The loan processor does what any other one would do; handle the paperwork to ensure the loan moves along without any snags.
Is It Worth the Discount?
At the end of the day, wouldn’t you rather work with a mortgage broker (or loan officer) who will do the work for you and consult with you from start to finish?
Obtaining a mortgage is a complicated process, and one that should not be taken lightly, especially if you’re green on the subject.
While it sounds like a good idea to cut the fat and reduce costs, eliminating your loan guide could be a risky endeavor, especially if the pricing doesn’t even turn out much better.
The last thing you’d want is to be out on your own with no assistance from the company you ultimately chose to work with just to get a slight discount.
But like any other company, you may get a good deal with Close Your Own Loan if all goes right.
It is recommended that you shop around with a variety of different physical banks, online lenders, credit unions and mortgage brokers to ensure you find the right fit for your unique situation.
The more banks and brokers you include in the process, the better your chances of finding the best deal.